New trade deal won't help UK SMEs facing a record drop in US exports, says Parcelhero

June 19, 2025 - PRLog -- The international delivery expert Parcelhero says the new US-UK trade deal – announced on 8 May and finally signed off by President Trump and PM Keir Starmer at the G7 meeting on Monday – has been eagerly anticipated. However, it cautions the agreement may be too little, too late to help many British SME-sized exporters.

April's trade figures from the Government's Office for National Statistics (ONS) have revealed just how bad the impact of President Trump's 'Liberation Day' tariffs (announced on 2 April) were for UK exports to America. Britain's exports to the US tumbled by £2bn compared to March. That's a fall of 33% and the largest monthly decrease since records began back in January 1997. UK exports to the US have now fallen to their lowest level since February 2022.

Parcelhero's Head of Consumer Research, David Jinks M.I.L.T., says: 'Whichever way you look at it, these disastrous export figures show why the UK urgently needed at least part of its US trade pact signed off as soon as possible.

'However, Monday's deal to reduce tariffs on cars and exempt aerospace products won't help the many British manufacturers and retailers who sell other types of products to the US and have been hit hard by the new Trump tariffs. The US is Britain's largest single overseas market and last year around 39,500 UK VAT-registered businesses exported goods there. The majority of these companies won't see any benefit from the new deal.

'That's because the new 10% blanket tariff on UK goods announced on 2 April remains on the majority of goods valued at over the USA's $800 (around £600) de minimis limit. That applies to a multitude of items, from high-end clothing to ceramics. To give an idea, last year the UK exported $138.87m of apparel (including knitted and crocheted clothing), $109.37m of ceramics and $256.75m of toys, games and sports equipment to the US. All such products with a value of over $800 still face Trump's new 10% tariff.

'All of this means that Trump and Starmer's Economic Prosperity Deal may not be worth the paper it's written on for many UK exporters. What is really needed is a comprehensive Free Trade Agreement with the USA that would eliminate tariffs and speed up the processing of UK goods at US borders.

'Of course, whatever the outcome of the still-ongoing trade negotiations, we are inevitably looking at a period of volatility and changes to US shipments. Live information on US courier services, as well as plenty of advice on shipping to America, can be seen at  https://www.parcelhero.com/en-gb/international-courier-services/usa-parcel-delivery